Help for first home buyers

Help for first home buyers

Placements are still available for the First Home Loan Deposit Scheme.

This allows first home buyers to purchase a property with as little as 5% deposit without the need to take out costly lenders mortgage insurance.  The savings are potentially many thousands of dollars.  This is a big help for first home buyers.

First home buyers also have the advantage of being able to combine these savings with other concessions or grants that may be applicable to them. This is fantastic news as in Queensland you may also have access to the First Home Owners Grant and first home stamp duty concession.

The table below shows the potential savings of $13792.85 that can apply through the benefits of the First Home Loan Deposit Scheme! This is based on a $400000 property with a 5% deposit.


Lenders Mortgage Insurance Calculator

Property Value:

$400000

Loan Amount:

$380000

Deposit Required Min 5%

$20000

Loan to Value Ratio:

95%

Loan Term

30 years

LMI Premium:

$12578

LMI Stamp duty:

$1214.85

LMI Premium Total:

$13792.85

 

Am I eligible for the First Home Loan Deposit Scheme? 

 Customers wanting to participate in this scheme will need to meet the following criteria:

·        Be an Australian Citizen 18 years or older
·         Never owned or held an interest in an any residential property
·         If you are buying as a couple, it must be with your spouse or de-facto partner
·         Only singles with a maximum taxable income of $125000 and couples with a combined taxable income of $200000- may be eligible.
·         Have a minimum of 5% deposit but less than 20% of the property’s value
·        Your loan must be Owner Occupied with principle and interest repayments
·         The home you choose can be an established property, a newly constructed property, or land together with a separate contract to build a home.  (including house and land packages)
·         There are also thresholds in place on the value of the property.  What this means is the maximum amount that property is worth cannot exceed the cap for your location.  In Brisbane, Gold Coast and on the Sunshine Coast the cap is $475000-.  In all other Queensland areas including the Toowoomba area, the cap is $400000-.  Other States and Territories vary, please contact us if you would like more information regarding other areas of Australia. 

How do I Apply?

 There are only a limited number of participating lenders able to offer this scheme to first home buyers, with applications lodged through your lender. The scheme is administered by the Commonwealth Government, through the National Housing Finance Investment Corporation, however, you are not able to apply directly through them.   You can read further information about the scheme here

In order for you to choose the lender best suited to your needs, we are here for you.  At Real Choice Finance we can assist with the whole loan process.  We will meet with you to discuss your requirements, advise you of lenders and options available.  We will help you to select the right product and lender for your needs.  We provide help for  first home buyers, and assist with one of the biggest commitments of your life.

You may have many more questions that need to be answered before taking the plunge into home ownership and mortgages.  Many options are available to you even if you do not meet the eligibility of this scheme.  Contact one of our qualified brokers today to discuss your requirements so we can give you a helping hand with finance. 

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